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Ally Financial (ALLY) Gains But Lags Market: What You Should Know
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In the latest trading session, Ally Financial (ALLY - Free Report) closed at $48.28, marking a +0.35% move from the previous day. The stock lagged the S&P 500's daily gain of 1.5%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.52%.
Prior to today's trading, shares of the auto finance company and bank had lost 0.25% over the past month. This has was narrower than the Finance sector's loss of 1.09% and the S&P 500's loss of 3.75% in that time.
Investors will be hoping for strength from Ally Financial as it approaches its next earnings release. The company is expected to report EPS of $1.96, down 6.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.14 billion, up 10.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.58 per share and revenue of $8.73 billion. These totals would mark changes of -11.96% and +6.36%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Ally Financial. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.26% higher within the past month. Ally Financial is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Ally Financial is currently trading at a Forward P/E ratio of 6.35. This valuation marks a discount compared to its industry's average Forward P/E of 7.38.
Meanwhile, ALLY's PEG ratio is currently 0.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Consumer Loans industry currently had an average PEG ratio of 0.34 as of yesterday's close.
The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ALLY in the coming trading sessions, be sure to utilize Zacks.com.
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Ally Financial (ALLY) Gains But Lags Market: What You Should Know
In the latest trading session, Ally Financial (ALLY - Free Report) closed at $48.28, marking a +0.35% move from the previous day. The stock lagged the S&P 500's daily gain of 1.5%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.52%.
Prior to today's trading, shares of the auto finance company and bank had lost 0.25% over the past month. This has was narrower than the Finance sector's loss of 1.09% and the S&P 500's loss of 3.75% in that time.
Investors will be hoping for strength from Ally Financial as it approaches its next earnings release. The company is expected to report EPS of $1.96, down 6.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.14 billion, up 10.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.58 per share and revenue of $8.73 billion. These totals would mark changes of -11.96% and +6.36%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Ally Financial. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.26% higher within the past month. Ally Financial is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Ally Financial is currently trading at a Forward P/E ratio of 6.35. This valuation marks a discount compared to its industry's average Forward P/E of 7.38.
Meanwhile, ALLY's PEG ratio is currently 0.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Consumer Loans industry currently had an average PEG ratio of 0.34 as of yesterday's close.
The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ALLY in the coming trading sessions, be sure to utilize Zacks.com.